Boston Private Financial Holdings announced that it has appointed Anthony DeChellis as Chief Executive Officer, effective November 26, 2018. Mr. DeChellis will also serve as CEO of Boston Private Bank & Trust Company, a wholly owned banking subsidiary of the company.

Boston Private Financial has agreed to sell its entire ownership interest in Bingham, Osborn & Scarborough, or BOS, in a transaction that will result in BOS becoming majority owned by members of its management team. As part of the transaction, Kudu Investment Management, a New York-based provider of passive, long-term capital to asset and wealth management firms, will acquire a minority interest in BOS alongside management. Boston Private will receive approximately $21M of cash at closing and an eight year revenue share. Boston Private currently estimates that the financial impact of the transaction will result in a pre-tax gain of approximately $18M and a related tax expense of $3M-$4M. The net financial impact will increase Tier 1 Common Equity by approximately $33M. The financial impact will be recorded at the time of closing, which is expected to occur in Q4. BOS had approximately $4.7B of AUM as of September 30 and accounted for approximately $17.4M of revenue in Boston Private's Wealth Advisory segment, $11.9M of operating expense, and $2.1M of net income attributable to noncontrolling interests in Boston Private's financial results during the first nine months of 2018.

"Our third quarter results demonstrate improved financial performance across our core businesses. Operating basis pre-tax, pre-provision income increased 15% linked quarter and 6% year-over-year," said Clayton G. Deutsch, CEO. "The Bank demonstrated linked quarter average deposit growth of 6%, and Boston Private Wealth continues to demonstrate strong new business generation across regions and distribution channels. Our third quarter results include a restructuring charge of $5.8 million, which is the result of an efficiency initiative guided by a focus of delivering expense reduction and an improved return profile. We expect restructuring benefits to include approximately $11 million of expense savings in 2019."

Boston Private announced the appointment of Joy McCune as its new Chief Human Resources Officer. McCune will be succeeding Martha Higgins to lead Human Resources as a member of the Boston Private management team. McCune will report directly to Clayton Deutsch, CEO of Boston Private. She will be based in Boston, Massachusetts.

EPS includes income tax expense of 15c per share attributable to the divestiture of Anchor Capital Advisors. Reports operating return on average common equity of 10.0%. Tangible book value per share as of June 30 increased 9% year-over-year to $7.62.Total assets under management were $21.4B and total net flows were negative $76M. The company said, "This quarter's reported results were heavily influenced by a $12.7 million tax charge related to the divestiture of Anchor Capital in April of 2018. Despite this charge, the Anchor divestiture created economic value for BPFH in the form of an ongoing cash flow stream and capital flexibility. Additionally, we utilized the proceeds to help fund the redemption of $50 million of preferred shares in order to benefit common shareholders in future periods. Looking through to core operating results, our three wealth affiliates turned in solid revenue growth with acceptable margins. Our Boston Private Wealth business generated record levels of new business during the quarter, which should benefit forward revenue and earnings. Boston Private Bank increased loan balances 2% linked quarter and 7% year-over-year. This was offset by intensifying deposit competition. Consolidated expenses, excluding Anchor, came down 2% linked quarter and the year-over-year increase was below our target range of 4% to 5% expense growth per year."

The company recorded a provision credit of $1.8M for the first quarter, compared to a credit of $0.9M for the fourth quarter of 2017 and a credit of $0.2M for the first quarter of 2017. The provision credit in the first quarter of 2018 was primarily driven by a decline in total criticized loans and improved loss rates, partially offset by loan growth. Tangible book value per share as of March 31, 2018 increased 7% year-over-year to $7.17.

Average Total Deposits increased 7% year-over-year to $6.4 billion, and Average Total Loans increased 7% year-over-year to $6.4 billion. Total Assets Under Management/Advisory, excluding Anchor Capital Advisors LLC, were $21.2 billion at the end of the fourth quarter, and Net Flows during the fourth quarter were $128 million.

Boston Private Financial has agreed to sell its entire ownership interest in Anchor Capital Advisors in a transaction that will result in Anchor being majority owned by members of its management team. As part of the transaction, an affiliate of Lincoln Peak Capital Management, a long-term equity partner for high quality asset management firms, will acquire a minority interest in Anchor alongside management. Boston Private will receive approximately $32M of cash at closing and future revenue share payments that have a net present value of approximately $15M, subject to purchase price adjustments, at closing. Boston Private currently estimates that the financial impact of the transaction will result in a non-cash pre-tax charge of approximately $25M in Q4 and a tax expense of $11M-$16M at closing. The net financial impact will increase Tier 1 Common Equity by approximately $30M-$35M. Closing is expected to occur in 1Q18 with the actual tax expense and corresponding increase in Tier 1 Common Equity to be determined by the applicable tax laws in effect at the time of closing. Anchor had approximately $9.2B of AUM as of September 30, and accounted for $24.7M of revenue in Boston Private's Investment Management segment, $19.0M of operating expense, and $1M of noncontrolling interest expense in Boston Private's financial results during the first nine months of 2017. The transaction is subject to obtaining client consents, Anchor raising debt financing, and customary closing conditions.